As from February 1st, 2024 all services initially routed via the Red Sea passage will now follow the Cape of Good Hope routing.

Lars Jensen on Day 53 of the #redsea crisis, likely shipping network restructure and implications for shippers.

CMA CGM’s formal confirmation yesterday that “as from February 1st, 2024 and until further notice, all services initially routed via the Red Sea passage will now follow the Cape of Good Hope routing” completes the separation between the global alliance carriers and smaller niche carriers still operating services using the Bab al-Mandeb crossing, notes Lars.

Shippers in the Arabian Gulf, Indian Subcontinent and East Africa-Europe trades who work with the major carriers are advised to “expect fewer direct port calls and more transhipment hubs – especially into the Mediterranean” as shipping service networks are redesigned to adapt to the new reality.

Sure to be a major talking point at this week’s FRUIT LOGISTICA is what does this all mean for #reefercontainer cargoes especially fruit and other seasonal fresh produce that do not take kindly to longer transits and transhipments?

What will be the fallout and short/longer term response for and from shippers and logistics providers?

#caveatemptor #coldchainlogistics #redsea #disruption #containershipping #reefercontainer #foodsupplychain #keeptradeflowing

Day 53 of the Red Sea crisis and CMA CGM has now officially announced that they will also re-route their vessels around Africa.

This completes the full separation between the global alliance carriers and the smaller niche carriers who still operate services using the Bab al-Mandeb crossing. It should in the context be noted that European niche carrier Tailwind also goes around Africa though, leaving the niche direct Asia-Europe service principally to small Chinese carriers servicing the China-Russia trade. The multitude of Asian niche carriers which cross the strait is principally linking the Red Sea ports to Asia and do not go through the Suez Canal into the Med.

In light of the operational reality Maersk has launched a new service going direct from multiple ports in the Arabian Gulf and Oman to Port Said in Egypt and back. It is clear how this allows a service between the Arabian Gulf ports, as well as potential transhipment cargo from Salalah into the Med using the key hubs at Port Said at the end and Tangiers as well as Algeciras in the west end.

We should expect carriers to launch several new similar services and/or redesign their service networks linking especially the Arabian Gulf, the Indian Subcontinent and East Africa to Europe. Shippers in these trades should expect fewer direct port-port calls and the use of more transhipment hubs – especially into the Mediterranean. This is new territory so to speak, and it should also be expected that even new services being launched might see further revisions to their rotations as cargoflows and feeder networks begin to adjust to the new reality.

US forces attacked and destroyed 2 drone-boats in Houthi-controlled areas before they could be launched at passing vessels. (yes I know, technically they are called “uncrewed surface vehicles (USV)” I just happen to like the word drone-boats 😊 )
 

Read more from Lars Jensen

Source CMA CGM

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